Green Deal FAQ’s
Here is your quick start guide to the new Green Deal. You will find some of our most frequently asked questions below about the Green Deal plan. For more information or to book your free consultation drop us a line using the contact form.
What does the Green Deal offer?
A Green Deal Plan can be a great way to improve the home you’re living in – even if you don’t own it. It’s a bit different from anything you might have seen before, so let’s explain why we think it’s a win/win for both your landlord and you!
A Green Deal Plan is an arrangement to install energy efficient home improvements to your property. However, unlike conventional arrangements, the repayments for a Green Deal Plan are added to the electricity bill of the property and so are paid for by you. The improvements are all designed to save money on the energy bills. The repayments for the loan in the first year cannot exceed the energy savings that a typical user would save. So if you’re a typical energy user, the improvements won’t cost you anything – your energy bills will be the same or lower – but you’ll have a nicer, warmer, place to live. Even if you’re not a typical user, you’ll still have a nicer place to live and you’ll be getting protection from the energy efficiency of the improvement against rising energy prices in the future.
A Green Deal Plan also comes with a guarantee. For any damage caused by the work as well as the measure itself. And that guarantee is backed by insurance too – just in case anything happens to the Plan provider
The repayments for the loan are added to your electricity bill. So simple. No worries about setting up new direct debits. No worries about forgetting to pay. No new bill arriving on your doormat each month
Best of all, the loan stays with the property when you move out. So you can be confident that you will only be responsible for it whilst you’re benefiting from the improvement. The Green Deal is a government led scheme, so you can be confident that the companies have all been accredited by the Green Deal Oversight and Registration Body and are audited and monitored regularly.
From the 1st April 2018, there will be a requirement for any properties rented out in the private rented sector to normally have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating. A civil penalty of up to £4,000 will be imposed for breaches.
Who can claim Green Deal?
Green Deal isn’t funding, it is a loan which is tied to the property. You repay it through the savings you make over the years through your electricity bill. A Green Deal Plan provides your installation agreement and loan together. Home owners, landlord, tenants can all apply for it (subject to status).
The repayments for the loan are added to your electricity bill. No worries about setting up new direct debits. No worries about forgetting to pay. No new bill arriving on your doormat each month. The loan stays with the property if you move out. As the repayments for the loan are made on the electricity bill, if you move out and there’s a new bill payer, they take on the repayments for the loan. So you can take out the loan without worrying that you won’t stay in the property long enough to see the full benefit. The loan terms are generally longer than normal consumer credit loans. This means the repayments each month are lower which can make the repayments easier on your pocket and the improvement more affordable (although it can make the overall cost greater, so do look at all the options before you decide).
The Green Deal is a government led scheme, so you can be confident that the companies have all been accredited by the Green Deal Oversight and Registration Body and are audited and monitored regularly
Who runs the Green Deal?
Green Deal is a government backed scheme, which is currently being operated by Green Deal Finance Company (GDFC). The Green Deal Finance Company (GDFC) is a privately-owned consumer credit company focused on setting up, financing and administering Green Deal Loans. Green Deal Loans provide customers with accessible financing to improve their homes by installing energy efficiency products.
GDFC operates on a business-to-business level with its network of Green Deal Providers who are able to offer the GDFC’s finance to their customers.
GDFC has a current loan base of over 12,500 properties and commenced financing loans again in May 2017. The Company, which has ambitious growth plans, aims to become the leading platform for consumers in the UK in the home energy efficiency space.
We are approved Green Deal providers. When you come to Eco-energi for your Green Deal we will make all the arrangements and manage the Green Deal for you.
Am I eligible for Green Deal?
Home owners, landlords & tenants (subject to status) can apply for a Green Deal Loan
Who pays for the Green Deal assessment?
The customer pays for the Green Deal Assessment – the charge is £95+VAT which will be refunded if the Green Deal plan is taken out.
Who provides Green Deal finance?
The finance is provided by the Green Deal Finance Company (GDFC) . GDFC was originally launched in 2012 as part of an initiative introduced by the Government to reduce its carbon emissions by 35% by 2020 through addressing the UK’s thermally inefficient housing stock, the worst in Europe. In January 2017, the company was acquired by Greenstone Finance, Aurium Capital Markets and Honeycomb Investment Trust.
The Green Deal Finance Company was bought from the Government at the beginning of this year and is now run by a private company. You can read more about the new Green Deal arrangements here.
How will the Green Deal benefit me?
The Green Deal has been designed to specifically cover home improvements related to energy efficiency measures. If your energy rating (as demonstrated by your EPC) is poor, energy efficiency measures could result in:
• Cheaper bills
• A warmer, healthier home
• Improved marketability of your property.
What does Green Deal cover?
The following measures are included in the Green Deal;
- New or replacement boiler
- Heating Controls
- Heating System Insulation
- Ground Source Heat Pump – GSHP
- Air Source Heat Pump – ASHP
- Storage Heating
- Hot Water Systems
- Flue Gas Heat Recovery System – FGHRS
- Loft Insulation
- Floor Insulation
- Cavity Wall Insulation
- Internal Wall Insulation – IWI
- External Wall Insulation – EWI
Who regulates Green Deal?
Green Deal is regulated by Green Deal Oversight & Registration Body (GDORB) in conjunction with Department of Business Energy & Industrial Strategy (BEIS).
The Green Deal Oversight and Registration Body (GD ORB), on behalf of the Secretary of State, manages the authorisation scheme for participants in the Green Deal and is responsible for a number of functions aimed at providing effective administration and oversight of the scheme. The GD ORB is responsible for maintaining a register of all authorised Green Deal Providers, Certification Bodies, Assessors and Installers; maintaining the Green Deal Code of Practice and controlling the use of the Quality Mark; ongoing monitoring of Green Deal Participants against the Code of Practice; producing an annual Green Deal report; and gathering evidence of non compliance and referring participants to the Ombudsman or the Secretary of State where appropriate and imposing sanctions when directed.
BEIS will bring together responsibility for business, industrial strategy, and science and innovation with energy and climate change policy, merging the functions of the former BIS and DECC
How do Green Deal repayments work?
The main difference between Green Deal and a standard loan is that the Green Deal loan is to the property (rather than the owner). Loan repayments are made through the regular energy bill which is expected to be lower than before improvements.
This is why an assessment is required to determine eligibility. The property must meet the “GOLDEN RULE”. According to the Golden Rule, the energy savings should always be greater than or equal to the repayments. The installations of energy efficiency measures must generate a considerable amount of savings on the customer’s energy bill for this rule to be met.
A Green Deal loan is a unique type of loan in which householders can borrow money to pay for the cost of installing energy efficiency measures and repay the borrowings as part of their electricity bills
How much are green deal payments?
This is dependent on the savings, measures & other contributing factors.
It depends on the assessment and resulting Green Deal Plan. As an approved Assessor, Eco-energi will work out what you need to have done. Here are two actual examples. One customer had a Green Deal Plan where the works cost £3,960 and she contributed £710 towards them. Another customers works totalled £4,200 and ended up making no contribution. In short, you need to get your home assessed before we can tell you the cost, if any, of your contribution.
What if I sell my property?
No problem! If you sell your property the new owners will continue to pay back the loan on the electricity bill while enjoying cheaper energy bills. The finance stays with property it has been used to improve.
How many green deal providers are there?
Currently there are only 6 active Green Deal providers, who are approved by GDFC to provide GD finance.
Are Green Deal plans subject to status?
In short, yes. When applying for a Green Deal loan there will still be eligibility checks made to determine that it is ok to go ahead with the loan. The credit score required to 694 (Equifax) to pass a Green Deal application. However, before we apply for Green Deal finance, we will complete a soft credit check on the tenant, bill payer, home owner or the landlord (where applicable) to check eligibility. This soft credit check won’t leave a footprint on your credit file.
How does green deal work for rural customers?
Same as any other customer. The only requirement is that the property should be connected to an electricity meter (pre or post pay)
If you think that the Green Deal sounds like the answer to your home improvement needs, then give us call on 01344 876672 or complete the form on this page and we will be happy to speak to you. If you would like more information feel free to continue browsing the website or you can call or email with any questions that you may have.